The scariest ghost this Halloween isn’t in a costume — it’s the preparer who won’t sign your return.

A ghost preparer takes your money, prepares your return, and leaves no name on it — no signature, no valid PTIN. If the return is wrong, the IRS still comes to you. Two new federal reports in October 2026 explain why that one missing signature matters.

Halloween is a week away, but the ghost in this story is not a costume. It is a paid tax preparer who prepares a return and refuses to sign it, or refuses to include a valid Preparer Tax Identification Number (PTIN). The IRS calls that person a “ghost” preparer — and its Tax Tip 2026-27 (April 1, 2026) calls the refusal “a major red flag.”

This month, two federal watchdogs put fresh numbers behind the warning.

What is a ghost preparer?

A ghost preparer is a paid preparer who does not comply with the requirement to identify themselves on the returns they prepare for others. For an e-filed return, the ghost prepares the return but refuses to digitally sign as the paid preparer. For a paper return, the IRS notes, a ghost may print the return and have the taxpayer sign and mail it — with no preparer shown on it.

By law, anyone who is paid to prepare, or assist in preparing, a federal tax return must have a valid PTIN. Paid preparers must sign and include their PTIN on the return.

Why did GAO write a whole report about this?

The Government Accountability Office report GAO-27-108176 (October 2026) starts with scale: paid preparers prepared more than half of all tax returns in fiscal year 2025. When a preparer hides, GAO says, they can avoid accountability for filing fraudulent returns, stealing refunds, or stealing identities — and leave taxpayers responsible for inaccurate or fraudulent returns they prepared.

GAO also found the IRS response is fragmented. Efforts sit across six IRS offices. The systems used to track ghost-preparer cases and outcomes are not connected and have limitations, so the IRS does not know how many ghost preparers it has identified, investigated, and addressed. GAO made three recommendations — improve data collection, sharing, and analysis; fold ghost-preparer work into one coordinated paid-preparer strategy; and set measurable objectives and goals. The IRS agreed with all three.

What did TIGTA find?

The Treasury Inspector General for Tax Administration (TIGTA) review reported on October 23, 2026, identified potential ghost preparers linked to returns claiming about $179 million in refunds over two tax years: 47 potential ghost preparers linked to 6,352 tax year 2023 returns requesting more than $94 million, and 65 potential ghost preparers linked to 6,444 tax year 2024 returns requesting more than $85 million. The Journal of Accountancy, reporting the TIGTA review, described those ghost-preparer returns as tied to a fraudulent withholding scheme — in plain English, returns claiming more tax was withheld than actually was, which inflates the refund. TIGTA also said ghost preparers may encourage claims for credits and benefits a taxpayer does not qualify for and, in some cases, steal refunds.

That $179 million figure is the ghost-preparer figure. It is separate from TIGTA’s broader finding in the same review — 2,044 preparers potentially involved in the overstated-withholding scheme overall, preparing 78,530 returns seeking more than $740 million — and separate again from more than 38,000 preparers with noncompliant PTINs who prepared more than 2.2 million returns in processing year 2025. Keeping the three numbers separate matters, because they describe three different problems.

The one check: did they sign?

Before a return goes out, look at the paid-preparer section. A real paid preparer signs — on paper or digitally — and puts a valid PTIN on the return. No signature and no PTIN is not a small paperwork detail. It means the person who prepared the return is not standing behind it in any way the IRS can trace.

• LEGAL: the preparer signs the return, includes a valid PTIN, and gives you a complete copy.
• SKETCHY: the preparer says they do not need to sign, asks you to sign and file it yourself, or will not give you a complete copy to review.
• STOP: the preparer disappears after filing, or a refund you expected goes somewhere you did not direct. Get the return and any IRS notice checked promptly.

What are the other red flags the IRS lists?

• Cash only, no receipt. The preparer requires payment in cash and will not provide a receipt.
• A fee tied to the size of the refund, or a big refund promised before your records are reviewed.
• Invented income or fake deductions to qualify you for credits or boost a refund.
• Your refund directed to the preparer’s bank account, not yours.
• A blank or incomplete return you are asked to sign. The IRS is direct on this one: never sign a blank or incomplete return.

Who is responsible if the return is wrong?

You are. The IRS Tax Tip states it plainly: when a preparer refuses to sign or provide a PTIN, that is a major red flag, and “the taxpayer is legally responsible for what is filed.” GAO makes the same point — a ghost can disappear, while the taxpayer is left responsible for penalties, interest, or an audit tied to the return that carries the taxpayer’s name.

That is why the signature check is worth doing before filing, not after a notice arrives. If a notice has already arrived about a return someone else prepared, do not ignore it — the notice, the filed return, and your copy of what you signed are the starting point for sorting out what was actually filed.

Are tougher ghost-preparer penalties already law?

No. Congress is considering stronger preparer oversight in the Taxpayer Assistance and Service Act. The Senate has passed the bill; it still awaits consideration in the House, so it is not law. Reports on the bill describe a proposed increase in the per-return penalty for failing to provide a valid PTIN — from $65 to $250 — but a proposed penalty is not a current penalty. Do not let anyone sell you urgency based on a law that has not been enacted.

Quick answers

Does a paid preparer have to sign my return? Yes. Paid preparers must sign and include a valid PTIN on every return they prepare.

What if my return was e-filed? The same rule applies digitally. A ghost preparer prepares the e-filed return but refuses to digitally sign as the paid preparer.

What is the simplest protection? Potentially, it is the signature itself: use a preparer who signs, includes a valid PTIN, and gives you a complete copy. A licensed CPA is required to sign returns they prepare for compensation. That accountability is the point.

Alex Volkov, CPA is a New York-licensed CPA with over two decades in accounting, focused on resolving IRS tax problems — back taxes, liens, levies, garnishments, and audits — for individuals and businesses nationwide.